Question

Economists Robert Jensen and Nolan Miller reasoned that to be a Giffen good, with an income effect larger than its substitution effect, a good must be ________ and make up a ________ portion of a consumer's budget.

Answer 1

Answer:an inferior good; very large

Explanation:A consumer budget is the actual purchasing potential with which he or she can purchase a number of two goods, provided their prices.

There are two factors that affect a consumer’s choice of quantities to purchase between two goods: prices and money income. Price times quantity for each good gives us the expenditure incurred on purchasing a good.